Working with technology partner Entis and Qontigo, as exclusive distribution partner, James Leaton leads the research and future development of the SDI AOP content. Just this week, the new 2022 data was released so we took this opportunity to find out more about what this means for investors.
Rebecca Chesworth, Senior Equities Strategist at State Street Global Advisors SPDR ETFs; and Hamish Seegopaul, Head of R&D for ESG and Quantitative Indices at Qontigo, discuss the change in underlying index for the SPDR® STOXX Europe 600 ESG Screened UCITS ETF and how clients’ ESG needs are shaping the product offering.
Sustainable investing strategies vary. Some investors, for example, simply want to improve ESG alignment. Others seek to maximize their impact on society, by investing in those companies that contribute the most to certain goals. While the metrics that underlie these approaches have some overlap, there is not perfect correlation, in terms of how metrics are defined, how portfolios are constructed, what is being targeted, etc.
In this post we employed a “fact-finding” approach to examine the issue of how much exposure to a single SDG a portfolio can potentially achieve, and how that exposure is related to active risk. For this analysis we used the Axioma Worldwide Fundamental Equity Factor Risk Model – Medium-Horizon and the SDG contribution from the SDI AOP data as of July 1, 2021.
Using the United Nations’ Sustainable Development Goals (SDGs) as a framework for an impact-measurement approach can help understand and quantify companies’ real-world impact, a new whitepaper from Qontigo and Clarity AI argues. Such an approach enables investors to bridge an important gap at a time when impact has emerged as a key investment pillar, right next to risk and returns.
A panel at COP26 comprised of sustainability and index experts, including members of Willis Towers Watson and Qontigo, explains how the STOXX Willis Towers Watson Climate Transition Indices (CTIs) help investors manage climate-transition risk and align their investments for the economic transition to net zero.
One of the panels at the Sustainability & Impact Investor Forum in Monaco last month drew from the perspectives of active fund management, asset-owner and indexing specialists, who discussed the key drivers and approaches to incorporate the transition to net zero into investment portfolios.
Lyxor ETF Germany and Austria’s Head of Product Development & Engineering explains how the change in the underlying index for the Lyxor 1 STOXX® Europe 600 UCITS ETF means the fund now complies with sustainability labels and meets the responsible criteria of retail and institutional European investors.
Rick Redding of the Index Industry Association (IIA) and Qontigo’s Arun Singhal discuss what role indices will play in an asset-management industry increasingly veering towards sustainability considerations in the portfolio-construction process.
Sustainability indices and analytics are crucial catalysts for investors to transition from ‘brown’ to ‘green’ portfolios. However, the shift is being hindered, among other things, by inconsistent national legislations and lack of proper ESG disclosures from companies. Regulators have a key role to play to overcome these obstacles.
A webinar organized by Risk.net and Eurex addressed the surge in interest in ESG derivatives and explored what lies ahead for the market amid increasing regulation and continued improvements in data and index design.
The STOXX Willis Towers Watson Climate Transition Indices (CTIs) are an innovative new family of indices designed to manage climate transition risk through a forward-looking, bottom-up analysis of the impact on company valuations from moving to a low-carbon economy. The indices help address risks and opportunities arising from climate transition in a transparent, systematic way and result in portfolios consistent with the Paris Agreement goals.